Tokyo – Fuji Media is preparing to sell its property unit, Sankei Building, for an estimated ¥1 trillion (about $6.3 billion) including debt. The broadcaster expects final bids from major private‑equity firms by the end of October.
Sources familiar with the process say Blackstone, Bain Capital and Warburg Pincus are among the global investors expected to submit binding offers. BGO, a real‑estate investment firm owned by Canada’s Sun Life Financial, also plans to present a bid.
Shareholder concerns
A Fuji Media shareholder, Vasanta Master Fund, which holds less than 1 % of the company, sent a letter to group CEO Kenji Shimizu asking for greater transparency. The fund wants more detail on the value of Sankei’s assets, the transaction structure and alternatives such as a partial sale, spin‑off or phased sale of individual assets.
Analyst Travis Lundy of Quiddity Advisors noted that uncertainty remains about whether Fuji Media will sell the entire unit or only a portion, adding that a full sale would likely fetch a higher price.
Approval process and market backdrop
Fuji Media will seek shareholder approval after selecting a preferred bidder. The company said it is evaluating the method, scale, timing and other details of the potential investment before making a public announcement.
The interest from foreign investors highlights Japan’s strong real‑estate market, driven by robust office‑space demand, a weak yen and openness to overseas ownership. Land prices rose 1.5 % in the year to July 1, marking a fifth consecutive year of gains.
According to LSEG data, mergers and acquisitions targeting Japanese real‑estate assets totalled $15.5 billion as of October 5, up 45 % year‑on‑year and the highest level since 2013.
Activist pressure
Fuji Media’s move follows pressure from activist investors, including US‑based Dalton Investments and funds linked to veteran Japanese activist Yoshiaki Murakami, to divest real‑estate holdings and unwind cross‑shareholdings. In February, the broadcaster bought back about 30 % of its shares, allowing major activist shareholders to exit and signaling a shift toward evaluating its property portfolio.
Blackstone, Bain Capital, Warburg Pincus and BGO declined to comment on the pending bids.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
